M & K CORP. v. Farmers State Bank

STATON, Presiding Judge.

In the period from July 28, 1981 to February 8, 1982, certain employees of M & K Corporation (MK), who were authorized by MK to sign checks, took advantage of their position and fraudulently endorsed forty-five (45) checks. These checks totaled $14,-558.19, and were made out to real and imagined people. They were cashed by the Farmers State Bank and honored by the Lake City Bank, where MK maintained its account. MK seeks to recover the amount charged to its account from both banks (hereinafter "Bank") because the checks bearing forged endorsements were cashed by the…